Trader of the Month – January 2018

Trader of the Month - January 2018

Australian Investment Education

What a great example, this month, of persistence paying off. This month’s Trader Of The Month nomination is a great example of taking the time and putting in the effort to get the results. What’s more this month’s nomination is truly an absolute Gentleman.

This is a great example of just how persistence and application can pay off so a huge Congratulations to Allan Smythe, our Trader of The Month January 2018.

Sold Jan 05’18 112.0 calls on 15/12/17 @ 1.40 when the stock price rose through the 110.0 levels

Stop tightened to 104.50

Income return 1.34%

Options expired and left holding stock

Sold Feb 09’18 112.0 calls on 8/01/18 @ 2.07 with the stock price around the 110.0 level

Income return 1.99%

Stop tightened to 108.5 less 1/3 & 2.07 i.e. 107.81 for the combo which was below the 110.0 support level and below the uptrend support line.

Stopped out on 10/01/18 at a combo fill price of 107.74 (stock price 109.77 less option price of 2.03)

Income return – 1.95%

Return on sale of stock 5.31%

Total return on trade 6.69% over 58 days

2. Lennar

Purchased stock @61.33 and sold Dec 15’17 62.5 calls as a buy-write on 28/11/17 @ 0.65

Income return 1.06%

Initial stop for combo placed at 58.35, which was below the 60.0 support level at a 4.0% risk

Options expired and left holding stock

Sold Jan 19’18 62.5 calls on 18/12/17 @ 1.73 with the stock around the 62.25 level

Income return 2.82%

Stop tightened to 59.17 (62.25 stock – 1.73 prem – 1.35 risk) which was still below the 60.0 support level and below the uptrend support line, with a 2.17% risk, however considering the initial entry of 61.33 less two lots of income, the trade was virtually risk free.

Exercised on expiry for a return on the sale of stock 1.91%

Total return on trade 5.79% over 42 days.

3 Alibaba

Purchased stock @174.87 and sold Jan 05’18 177.5 calls as a buy-write on 7/12/17 @ 4.40

Income return 2.52%

Stop placed at 162.00 (174.87 Stock – 4.40 prem– 8.47 risk), which was below the 170.0 support level and below the uptrend support line.

Exercised upon expiry for a total return of $1.80 or 3.98% for 24 days

Beats bank interest eh!

Thank you, Andrew, for giving us the knowledge, and the confidence through your boot camps and classrooms, to embark on our trading journey. I think if we can analyse each of our trades after they have closed out, we will be able to figure out what was good about the trade, as well as areas where we can improve next time.

With the help of yourself and Roger in figuring out all of our problems with stop losses etc., over the past 6 months or so, as well as utilising the trendlines, I can now reasonably predict where to place my technical stops according to market sentiment and volatility, rather than just using estimated percentage stops.

To have Roger over for the last Summit on the Gold Coast in November was a real bonus. Your comments for improvement would be appreciated and once again thank you and Roger for your mentoring.

Kind regards

Allan Smythe

Rather than any one trade, Allan has had multiple positions Closing in January:

Disney 6.69% profit over 58 Days

Lennar 5.79% profit over 42 Days

Alibaba 4.02% profit over 29 Days

Haliburton 3.98% profit over 24 Days

Bottom line is, doesn’t matter what you do for a living, or where you are in the World, you simply need to apply what we teach and make it happen. Very excited for Duncan and Emma as they enter a new chapter in their life, and now with the ability to generate extra income on the side, it should be all the sweeter!

Big Congratulations to Allan Smythe who is our Trader of The Month Winner for January 2018, great work my friend and truly well deserved!

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